This is the WA State Budget for 2026-27 in plain language. Each item is the name, the dollar amount, and what it actually does. I've grouped them by area of society. The Budget is a $13.2 billion capital program (the new things being built) plus a $52.5 billion operating budget (the year-to-year cost of running the State, up 6.9 percent on last year). Health alone accounts for 32 percent of all general government spending at $16.7 billion. This post can't cover everything; it covers the biggest items and the new ones, with sources at the end.
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Health, mental health, and disability
New Women and Babies Hospital: $1.78 billion total. Replacing King Edward Memorial Hospital. Construction underway, foundation piling done in early April. The biggest single hospital project in the Budget.
Bunbury Hospital Redevelopment: $572 million. Major upgrade of the regional hospital, ramp-up across the next four years.
Joondalup Health Campus Stage 2: $301 million. Public hospital expansion at the privately-operated Joondalup Health Campus.
Mt Lawley Hospital: $168 million. State Government acquiring and transitioning the hospital. The bulk ($153 million) flows in 2026-27.
Building Hospitals Fund: $2.86 billion total capacity. A pool of money for hospital infrastructure, originally $1.5 billion plus $1.36 billion transferred in from the Women and Babies Hospital Account when it closes in June. Currently funding the new Mandurah Hospital, Geraldton Radiation Oncology, Royal Perth ED Expansion, Albany Health Campus Expansion, and a future contribution to a Perkins Comprehensive Cancer Centre.
Bentley Health Service Surgicentre: $167 million. New surgical centre.
Graylands Reconfiguration and Forensics Project: $187 million. Major redevelopment of the forensic mental health facility.
Geraldton Health Campus Redevelopment: $192 million. Most of the spend ($114 million) was in 2025-26.
New Mandurah Hospital: $149 million. New hospital build, funded through the Building Hospitals Fund.
Tom Price Hospital: $93 million (with a $20 million contribution from Rio Tinto). Pilbara hospital redevelopment.
Fremantle Hospital 40-Bed Mental Health Project: $81 million. Inpatient mental health beds. The Government had to top this up by $16 million this year because construction costs went over.
Mullewa Community Hospital: $23 million. Yamatji country hospital redevelopment. The Government had to top this up by $13 million this year.
Step Up/Step Down Mental Health Facilities: $63 million across four locations. Broome ($19 million), Karratha ($20 million), South Hedland ($18 million), and a metropolitan youth facility ($6 million). Step Up/Step Down is mental health bridging accommodation between hospital and community.
Rockingham Mental Health Emergency Centre: $19 million. New mental health ED.
Armadale Mental Health Emergency Centre: $21 million. New mental health ED.
Anti-Ligature Remediation Program: $26 million. Statewide bed safety upgrades to prevent self-harm in mental health units.
Renal Dialysis Centre Halls Creek: $25 million. New regional dialysis centre.
Broome Renal Hostel: $23 million. Accommodation for regional renal patients.
Wirraka Maya Aboriginal Health Service expansion: $10 million. Pilbara Aboriginal Community Controlled Health Service expansion.
WA Health digital transformation: about $608 million combined. Includes a new Critical Health ICT Infrastructure Program ($139 million), a statewide Electronic Medical Record Program ($158 million), a Human Resource Management Information System ($275 million), and a State Health Operations Centre ($15 million). These are the systems that doctors, nurses, and hospital admin actually use.
Hospital cladding remediation: $96 million. Removal and replacement of dangerous aluminium composite panel cladding from Fiona Stanley, Perth Children's, QEII, and Building B.
Mental Health Commission infrastructure: $22 million. A new 20-bed AOD rehabilitation facility in metro Perth ($10 million), and an AOD Sobering Up Centre in Broome ($12 million).
Foundational Supports (Thriving Kids): $119 million Commonwealth funding. New Commonwealth program for early childhood disability supports outside the NDIS, beginning in 2026-27.
National Health Reform Agreement: $21.6 billion Commonwealth funding across 2026-27 to 2030-31. This is the main Commonwealth contribution to running WA hospitals, about $5 billion a year by 2029-30.
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Cost of living and household charges
Representative household 2026-27: $6,450.19 in tariffs and charges. That's a $222 decrease from last year, lowest household basket in five years. Seventh year running that household charges have stayed at or below inflation.
Public transport: $820 per household, down 18 percent. First full year of the $3.50 Go Anywhere Fare introduced in January 2026.
Electricity: $2,086 per household, up 2.75 percent.
Water, wastewater, drainage: $1,968 per household, up 2.75 percent.
Motor vehicles: $1,064 per household, up 3.4 percent.
Emergency Services Levy: $354 per household, up 5 percent.
$100 Fuel Support Payments: minus $200 per two-driver household. Fuel relief offset built into the household basket calculation.
Synergy financial viability subsidies: $1.279 billion over four years. This is the State paying Synergy to keep residential electricity prices below cost. Includes a brand new Cost Growth Assistance Payment ($355 million over four years) explicitly described as funding "the under-recovery of the A1 tariff that cannot be passed on to residential customers." Cost recovery from residential electricity dropped from 78 percent to 75 percent this year.
Country Water Pricing Subsidy: $2.722 billion over four years. State subsidising regional water customers because cost recovery in regional WA is 53 percent versus closer to 100 percent in metro.
Synergy Energy Assistance Payment: $97 million, 312,325 recipients. Concession on electricity bills for eligible households. Government endorsed a 10 percent uplift this Budget.
Local Government Rates Pensioner/Senior Rebates: $149 million, 263,000 recipients. Rates rebates for pensioners and seniors.
Seniors Cost of Living Rebate: $35 million, 373,000 recipients. Annual rebate for WA Seniors Card holders.
Regional Pensioner Travel Card: $41 million, 64,000 recipients. Card value rose 17 percent to $775 per year, announced in last year's Budget, full-year impact now.
Permanently Disabled Taxi Subsidy: $23 million, 11,800 recipients. Subsidised taxi travel for people with permanent disabilities.
WA Rent Relief Program: $20 million combined ($13.5 million continuing plus $6.5 million top-up). Direct rent assistance for vulnerable tenants.
First home buyers transfer duty changes from 7 May 2026. Full stamp duty exemption up to $600,000 (was lower). Concessional rate to $800,000. Vacant land exemption to $450,000, phasing out at $550,000.
Off-the-plan transfer duty concession: extended to survey-strata schemes, continues until 30 June 2028.
Energy Bill Relief Fund Commonwealth: $175 million, ending 2025-26. No Commonwealth follow-on funding has been announced for 2026-27.
Total social concessions in 2026-27: $4.4 billion. Includes $2.7 billion in operating subsidies for electricity, water, and public transport.
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Housing
Investment in Additional Homes: $1.4 billion total. The main pool funding new social housing builds across the four years to 2029-30.
Government Regional Officer Housing Program: $676 million. GROH provides housing in regional WA for State employees, teachers, nurses, police, public servants. The biggest single year is 2027-28 at $123 million.
Social and Affordable Housing Investment Fund: $2.9 billion total since inception. Government's commitment is to deliver 9,800 social and affordable housing dwellings by 2029-30. $723 million approved this Budget for 844 dwellings, refurbishing 215 properties, and acquiring land for about 233 more.
100,000 Homes for First Home Buyers: $212 million Commonwealth funding across 2026-27 to 2028-29. Federal contribution to the new homes program.
National Agreement on Social Housing and Homelessness: $1 billion Commonwealth funding across 2024-25 to 2028-29.
Court Place Social and Affordable Housing Development: $98 million. New mixed social/affordable development in central Perth, mostly built across 2026-27 and 2027-28.
Common Ground Mandurah: $56 million; Common Ground Perth: $90 million. Housing First model, supportive housing combining accommodation with on-site services for people experiencing chronic homelessness.
Smith Street Build to Rent: $72 million. New build-to-rent development.
Affordable Rental Build Program: $103 million. New affordable rentals.
Land Acquisition Program: $460 million. Buying land for future social housing.
Aboriginal Short Stay Accommodation: Geraldton $29 million, Perth $27 million. Short-stay accommodation for Aboriginal people travelling to regional cities for medical or family reasons.
Stirling Women's Refuge: $23 million. Domestic violence refuge expansion.
New Innaloo Refuge: $18 million. New domestic violence refuge.
Regional Supportive Landlord Program: $50 million. Government acting as landlord-of-last-resort to keep regional rental supply functioning.
Refurbishment of existing social housing: $186 million.
500 Homes for First Home Buyers Provision: $375 million held in reserve. Specific locations and dwelling types not announced.
Country Housing Authority abolished 19 March 2026. Functions absorbed into the Housing Authority and DevelopmentWA.
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Education and training
Cool the Schools: $89 million. Air conditioning rollout to schools across WA.
Brabham Senior High School: $144 million. Largest single new high school project, currently under planning name.
Alkimos North Senior High School: $52 million. Second new high school for the Alkimos area, on top of Alkimos College Stage 2 ($51 million).
Four new primary schools opening 2028: $202 million total. Eglinton North ($48 million), Treeby East ($46 million), Vasse West ($53 million), Yanchep East ($55 million).
East Perth Primary School: $168 million. Largest single new primary school project.
New primary schools 2029-2032: $250 million held for future schools where locations haven't been picked yet.
18 named schools getting Additions and Improvements: $160 million combined. From Karrinyup Primary ($27 million) and Como Secondary College ($31 million) at the larger end down to small upgrades. Also Belridge Secondary College $18 million, Champion Bay Senior High $23 million, Eastern Hills Senior High $1.5 million, Geraldton Senior High $8 million, and others.
Additional Classroom Capacity: $353 million rolling program for adding classrooms where enrolments grow.
Schools Asset Renewal Program: $76 million (new this Budget). Maintenance and Minor Works Targeted Upgrades, $40 million (new this Budget, funded by dissolving the Public Education Endowment Trust).
Air Conditioning Replacement Program: $61 million. Replacing existing aircon systems.
Schools Clean Energy Technology Fund: $40 million. Royalties for Regions funding for solar and battery installations at regional schools.
Boosting Before and After School Care in Schools: $10 million. Expanding OSHC programs in public schools.
Land Acquisition for new schools: $216 million combined. Land for primary schools $148 million plus general land acquisition $68 million.
Better and Fairer Schools Agreement: $8.1 billion Commonwealth funding across 2024-25 to 2034-35. The main Commonwealth schools funding agreement, ramping up to $1.74 billion in 2029-30.
National Skills Agreement: $1.4 billion Commonwealth funding across 2023-24 to 2028-29. Funds vocational training and TAFE.
Munster TAFE Expansion: $25 million. Expansion of Munster TAFE for renewable industries training (wind, batteries, hydrogen, electrification, robotics).
Pundulmurra Trade Expansion (South Hedland): $44 million. Expansion of Pundulmurra TAFE in South Hedland for Aboriginal trades training.
Balga Campus Specialist Teaching Block: $51 million. Specialist trade teaching facility at North Metropolitan TAFE Balga.
Joondalup Light Auto Workshop: $20 million. Automotive trades training expansion.
Investing in Modern Equipment for TAFEs: $43 million. Equipment upgrades across TAFE colleges.
Clean Energy Skills National Centre of Excellence: $37 million Commonwealth funding for renewables training equipment.
Midland Specialist Rail Trade Training Centre: $5 million. Rail trades training, supports METRONET delivery.
Construction Visa Subsidy Program plus Build a Life in WA: $5 million for an additional 1,000 places. Subsidies to bring construction workers to WA.
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Police, justice, defence, and AUKUS
Fremantle District Police Complex: $151 million. New Fremantle police complex, currently under construction.
Kimberley District Support Facility: $43 million. New facility, mostly funded in 2026-27 ($33 million).
Police Helicopter Replacement: $48 million. Fleet helicopter renewal.
Police ICT Optimisation Program: $38 million across two tranches (2024-2028 plus 2029-2032). Modernising police systems.
Police Asset Equipment Management Program: $58 million across two tranches.
Firearm Reform Program ICT Implementation: $26 million plus the National Firearms Register at $6 million.
Forrestfield Police Station: $26 million. New police station.
Land Forces Expo 2026: $10.5 million for security operations, plus $4.4 million capital, plus $2.1 million top-up for capital. Major defence industry expo.
WA Government Cyber Security Operations Centre expansion: $8 million. Cyber defence capability uplift.
New Youth Detention Facility: $159 million (separate from Banksia Hill). Location, capacity, and operating model not described in the Budget Papers.
Banksia Hill Detention Centre Upgrades: $67 million plus a new Crisis Care Unit ($2.5 million). Youth detention facility upgrade and new mental health unit.
Casuarina Prison Expansion Stage Two: $263 million. Adult prison expansion.
Acacia Prison Expansion Project: $227 million. Adult prison expansion.
Roebourne Regional Prison Air-Conditioning: $18 million. Air-conditioning upgrade for the regional prison.
Greenough Regional Prison Female Unit Upgrade: $12 million.
Court Audiovisual Maintenance and Enhancements: $29 million. Modernising AV in courts.
District Court Building Technical Upgrade: $18 million (new).
Offender Digital Services Platform Prisoner Telephone System: $11 million. Replacing the prisoner phone system.
National Access to Justice Partnership: $515 million Commonwealth funding across 2025-26 to 2029-30. Main Commonwealth legal aid funding.
AUKUS Defence Industry Incentive Scheme: appears in the Budget for the first time. Surfaces as a $3.4 million timing reduction in a Treasurer's Advance line item. Full scope and recipients not described.
Henderson Stage 1 Continuity of Service Funding: $30 million Commonwealth in 2025-26 only. What specific Henderson services this covers is not described.
AMC Landing Craft Heavy Program: $30 million (new). DevelopmentWA project for the Australian Marine Complex landing craft program.
Pilbara Ports Common User Upgrades: $430 million Commonwealth funding across 2023-24 to 2028-29.
Fire and Emergency Services: ~$254 million combined across the rolling Primary Fleet ($218 million), the Wanneroo Emergency Management Complex ($18 million election commitment), and the Yanchep Career Fire and Rescue Station ($18 million).
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Transport
Tonkin Highway Gap Project: $1.93 billion. Hale, Welshpool, and Kelvin Roads connections plus Stage Three Extension. The biggest single road project after Bunbury Outer Ring Road. Spread across the next four years.
Bunbury Outer Ring Road: $1.54 billion total. Major South West regional road.
Reseal Program Capitalisation: $1.19 billion. Rolling road resurfacing across the State network.
Anketell Road Construction: $974 million. Major road, back-loaded to 2028-29 and 2029-30.
Kwinana Freeway Widening: $700 million. Southern Suburbs Roads Package election commitment.
Reid Highway and Erindale Road Grade Separation: $450 million. Big interchange project, mostly built in 2028-29.
Fremantle Traffic Bridge / Queen Victoria Street: $597 million. Replacing the Fremantle bridge crossing the Swan River.
METRONET projects combined: about $6.58 billion. Forrestfield-Airport Link $1.84 billion + Byford Rail Extension $1.45 billion + Yanchep Rail Extension $1.34 billion + Level Crossing Removal Victoria Park-Canning $1.53 billion + New Midland Station $417 million.
High Capacity Signalling Program: $3.02 billion. Modernising the rail signalling system across the network.
Bus Electrification: $664 million. Election commitment to electrify the Perth bus fleet.
Railcar Programme combined: $1.6 billion. Australind Railcar Replacement $162 million + Railcar Acquisition $511 million + Railcar Replacement $945 million.
Land Transport Infrastructure Projects: $7.59 billion Commonwealth funding across 2024-25 to 2028-29. The main Commonwealth roads funding pipeline, the largest single Commonwealth contribution to WA across the period.
Tanami Road: $36 million Royalties for Regions. Strategic regional road sealing.
Outback Way: $48 million Royalties for Regions. Continuing the Outback Way upgrade.
Lumsden Point General Cargo Facility (Pilbara Ports): $629 million. New port infrastructure at Port Hedland.
Dampier Bulk Handling Facility: $356 million. Port infrastructure.
Hedland Maritime Initiative: $256 million. Port Hedland infrastructure.
Port Hedland Channel Zone 5 Bypass: $50 million (new, port-user funded).
Port Maximisation Project (Geraldton): $367 million. Mid West Ports redevelopment.
Fremantle Port Sustaining Capital Works: $145 million plus other Fremantle Port works totalling $592 million.
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Aboriginal affairs and Closing the Gap
Major Projects Fund: $500 million (new this Budget). Established to support the Aboriginal Cultural Centre and Scitech relocation.
Aboriginal Cultural Centre: $50 million in the project list, plus the $500 million Major Projects Fund. Location, design, governance, and curatorial arrangements not yet described in the Budget Papers. Cashflow back-loaded: most of the spend ($19 million) falls in 2029-30.
Stolen Generations Redress Scheme: $300 million committed. Administration $7 million plus $120 million in payments to eligible applicants in 2025-26.
Yamatji Nation Settlement: $3 million. Implementation of the settlement with Yamatji Marlpa Aboriginal Corporation.
Nyamba Buru Yawuru Health and Wellbeing Campus: $9 million combined. Yawuru community development including $6 million retail component.
Wirraka Maya Aboriginal Health Service expansion: $10 million. Pilbara ACCHS expansion.
Foundational Supports (Thriving Kids): $119 million Commonwealth funding for early childhood disability support outside the NDIS.
Royalties for Regions Regional Reform Fund: $30 million additional over four years. Supports Kimberley Schools Project, on-country residential youth facilities, ACCO employee housing grants, Pilbara Safe Spaces program, and East Kimberley/Hedland transitional housing.
North West Aboriginal Housing Fund: $41 million. Housing in the Kimberley and Pilbara.
Aboriginal Community Controlled Organisation Transition Pipeline: $22 million across four years. Pilot housing program transferring to Aboriginal-led organisations.
Pilbara Aboriginal Home Ownership Program: $19 million across four years.
Aboriginal and Islander Education Officers: $14 million Royalties for Regions across four years. Aboriginal staff in regional schools.
Broome Family and Domestic Violence Hub: $18 million Royalties for Regions across four years, plus the new Broome Aboriginal-Led Specialist Family Violence Court ($6 million), the first of its kind in WA.
Renal Hostels: $14 million Royalties for Regions. Halls Creek and Broome combined.
South West Aboriginal Medical Service Health Hub: $18 million Royalties for Regions across four years.
North West Drug and Alcohol Support Program (Kimberley): $28 million Royalties for Regions across four years.
Sister Kate's Aboriginal Aged Care: $25 million total, operated by Hall & Prior.
Buccaneer Archipelago Marine Parks: $13 million Royalties for Regions in 2026-27 (Bardi Jawi sea country).
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Energy and water
Clean Energy Fund: $1.4 billion (new this Budget). A new pool of money for clean energy projects, supporting the Clean Energy Link East transmission expansion in the South West Interconnected System. The fund is accumulating in the early years; no payments scheduled in the published table to 2029-30.
Clean Energy Link (Western Power project): $1.87 billion. Transmission expansion in the South West Interconnected System. Big year is 2026-27 at $574 million.
Western Power total Asset Investment Program: $19 billion. Across all four years. The biggest chunks are network maintenance ($4.8 billion in distribution overhead), customer-funded works ($3.5 billion), business and ICT systems ($2 billion), and asset replacement ($1.6 billion).
Standalone Power Systems: $565 million. Solar-and-battery systems replacing distribution lines for remote properties.
Network Undergrounding: $440 million. Putting overhead lines underground.
King Rocks Wind Farm (Synergy): $503 million. New wind farm.
Synergy generation and storage: $543 million combined. Muja Power Station $173 million + Cockburn Gas Turbine $153 million + Pinjar Gas Turbine $121 million + Kwinana Power Station $86 million + others.
Synergy Business Systems Replacement: $90 million. ERP and core systems replacement.
Synergy Cost Growth Assistance Payment: $355 million over four years (new this Budget). State subsidy paid to Synergy because residential electricity tariffs can't recover the full cost of supply.
Synergy Tranche 8 subsidy: $69 million over four years (new this Budget, beginning 2027-28). Compensates Synergy for new market rules requiring six hours of battery availability instead of four.
Synergy total financial viability subsidies: $1.279 billion over four years (combined: CGAP, System Security Transition Payment, NCESS Recovery, Tariff Equalisation Contribution Recovery, Tranche 8, and smaller items).
Tariff Equalisation Contribution: $290 million in 2026-27, $1.168 billion over four years. Cross-subsidy from commercial customers and Synergy to keep regional residential electricity prices uniform with metro.
Horizon Power total program: $1.38 billion. Asset Management Plan ($929 million) plus customer-funded works ($205 million) plus major projects ($59 million) plus remote communities ($189 million).
Horizon Power Transfer of Essential Services: $101 million plus $32 million Royalties for Regions. Aboriginal communities transitioning to Horizon Power for water, wastewater, and power services.
Horizon Power Advanced Metering Infrastructure: $23 million (new). Smart meters for remote communities.
Water Corporation total program: $13.7 billion. Across all four years. Main components: water supply capacity $3.5 billion, treatment capacity $1.06 billion, water network capacity $670 million, wastewater network capacity $1.05 billion, regional water supply $1.48 billion, regional water network $948 million.
Bunbury Water Resource Recovery Scheme: $58 million (new). New water recovery infrastructure.
Busselton Water Inland Borefield Transition Plant 8: $62 million. Climate adaptation water infrastructure.
Country Water Pricing Subsidy: $2.722 billion over four years. State subsidy to Water Corporation to keep regional water prices below cost.
COVID-19 Response Remote Aboriginal Communities Accelerated Works: $78 million. Continuing water and wastewater upgrades in remote Aboriginal communities.
Essential and Municipal Services Upgrade Program: $65 million. Aboriginal community water and wastewater upgrades.
Climate Action Fund: $265 million in drawdowns over four years. Includes $195 million for Department of Energy and Economic Diversification covering Collie transition, Kalgoorlie Vanadium Battery Energy Storage System, native forest logging transition, climate action and renewable hydrogen.
Pilbara Hydrogen Hub: about $68 million combined across multiple line items including the Clean Energy Training and Research Institute Pilbara ($11 million), hydrogen pipeline planning ($1 million), and Aboriginal community engagement payments ($2 million).
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Industry, manufacturing, and innovation
Strategic Industries Fund: $1 billion total commitment, $638 million still unallocated. Government's industrial precinct fund. $92 million allocated this Budget across Western Trade Coast/Kemerton land assembly ($51 million), Boodarie desalination planning ($21 million), and Western Trade Coast road planning ($13 million). The $638 million unallocated reserve is large, it's available for future industrial precincts not yet planned.
Made in WA Energy Affordability Investment Program: $156 million. Mostly low-interest loans ($153 million) plus administration. Supporting WA-based energy manufacturing.
Lithium and Nickel Industry Support Program: $45 million. Includes a $15 million interest-free loan facility for nickel producers. Direct industry support for lithium and nickel processing during commodity downturns.
Lithium Industry Support Program 2025-26 actuals, Synergy $13 million, Mid West Ports Authority $6 million, Southern Ports Authority $1 million.
Investment Attraction Fund Top-up: $30 million second round. New Energy Industries focus.
NeoSmelt Pilot Project: $75 million Kwinana. Rio Tinto, BHP, BlueScope, and Mitsui consortium for green steel pilot.
DPIRD New Metropolitan Facility: $320 million (new this Budget). Major new Department of Primary Industries and Regional Development headquarters and research facility, mostly built in 2028-29.
DPIRD Building Grains R&D Capacity: $12 million. Grains research investment.
State Barrier Fence: $28 million. Continuing the State Barrier Fence (biosecurity infrastructure).
Forest Products Commission Softwood Plantation Investment Program: $239 million total. Major softwood plantation expansion.
WA Agricultural Supply Chain Improvements: $29 million Royalties for Regions across three years (DPIRD), plus $177 million from PTA for rail freight upgrades.
Phase Out of Live Sheep Exports by Sea: $43 million Commonwealth funding across 2024-25 to 2028-29. Industry transition assistance.
(Defence industrial items, AUKUS Defence Industry Incentive Scheme, Henderson Stage 1 Continuity of Service, AMC Landing Craft Heavy Program, Defence West uplift, WA Government Cyber Security Operations Centre, are covered in the Police, justice, defence, and AUKUS section above.)
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AI and surveillance infrastructure
The Budget Papers don't aggregate AI spending into a single line. Adding up the items explicitly named as AI gives roughly $32 million across the forwards: the AI Investment Fund opening balance, the AI Investment Grants, the central AI Investment Fund and Rapid AI Delivery Team capability, the AI Solution for Teachers pilot, and the WA Vegetation AI mapping pilot.
Adding the digital infrastructure AI deployment runs on, where AI is a named or strongly implied component (Spatial WA, Health digital transformation, the broader Digital Capability Fund), takes the figure into the hundreds of millions.
The Digital Capability Fund draws $301 million in 2026-27 alone (a 19-fold increase from $16 million in 2025-26) and has been appropriated about $1.7 billion since 2021-22.
That central pool sits outside annual appropriation and funds the AI Investment Fund, Spatial WA, ServiceWA, the Cyber Security Unit, the Digital Driver's Licence, and other digital infrastructure.
Artificial Intelligence Investment Fund: a new Special Purpose Account established this Budget. Opening balance $5 million from 2026-27. The State's AI investment vehicle, sitting outside normal departmental procurement.
AI Investment Grants: $10 million ($5 million each in 2026-27 and 2027-28). Controlled grants under Premier and Cabinet, paired with the AI Investment Fund.
Central AI Investment Fund and Rapid AI Delivery Team: $12.3 million from the Digital Capability Fund. The central capability for whole-of-WA-Government AI rollout, run out of Premier and Cabinet.
AI Solution for Teachers: $4.6 million ($2.3 million annually 2026-27 and 2027-28). Generative AI pilot extension in WA public schools for lesson planning. Vendor not disclosed.
Spatial WA Program: about $55 million combined this Budget across new tranches. Spatial Digital Twin $22 million; Next Generation Spatial Cadastre $15 million (new); Spatial Applications Replacement $18 million (new). Spatial data systems with AI dimensions for environmental, planning, and infrastructure mapping.
WA Health digital transformation: about $608 million combined (also covered in the Health section). Critical Health ICT Infrastructure Program $139 million, Electronic Medical Record Program $158 million, Human Resource Management Information System $275 million, State Health Operations Centre $15 million, new Infectious Diseases Management System $2 million. AI and analytics dimensions, vendors not disclosed.
Microsoft Enterprise Agreement WA Health alone: $12.1 million in 2026-27. Plus CITS Microsoft Cloud Hosting and Licensing for the Cyber Security Operations Centre $3.5 million continuing, plus other agencies. The whole-of-WA-Government Microsoft footprint is substantial.
Public Transport Authority CCTV Program: $55.4 million total ($6.3 million in 2026-27, ongoing $5.6 to $8 million annually). Centralised CCTV across train stations and on-board, integrated with the Public Transport Operations and Control Centre. Video analytics and AI scope not described.
Digital Driver's Licence and Identity Ecosystem Uplift Phase 2: $8.3 million (new this Budget). Phase 2 of WA's digital identity rollout. Vendor not disclosed.
Office of the Information Commissioner: operational from 1 July 2025 under the Information Commissioner Act 2024. The Privacy and Responsible Information Sharing Act 2024 enforcement jurisdiction commences 1 July 2026, exactly as State digital identity, AI Investment Fund, and Digital Capability Fund expansion accelerate. New Case Management System $2.5 million funded from Digital Capability Fund. The Privacy Commissioner is the institutional counterweight to the surveillance and AI infrastructure being built.
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Where the money comes from
Iron ore royalties. The biggest single State revenue stream. Underpins both State and Commonwealth fiscal positions. The $400 million special dividend Pilbara Ports Authority is forecast to pay in 2026-27 reflects the same iron ore export volumes.
Company tax on mining companies. WA's contribution to Commonwealth company tax in 2024-25 was $24.8 billion. That's the company tax flow to Canberra, mostly from mining.
GST grants. WA's share of the GST is 75 percent of the per-person average, still the lowest of any state. WA's share rose from 70 percent in 2023-24 to 75 percent in 2024-25.
Stamp duty on housing transactions. First home buyer transfer duty changes from 7 May 2026 narrow this but it remains a major State revenue source.
Payroll tax. The biggest tax expenditure (concession) at $2.15 billion, but payroll tax remains a major revenue source.
Land tax. Land tax-free threshold and PPR (Principal Place of Residence) exemption together cost the State about $1.55 billion in foregone revenue.
Public corporation dividends. Government-owned utilities (Water Corporation, Western Power, Synergy, Pilbara Ports, Horizon Power) pay $4.1 billion in dividends and tax-equivalents to general government revenue in 2026-27. They receive $4.6 billion back as operating subsidies, so net the public corporations are -$484 million to general government.
Commonwealth Tied Grants: $42.4 billion across 2025-26 to 2029-30. Sector breakdown: Health $21.8 billion, Education $8.2 billion, Infrastructure $8.2 billion, Training $1.4 billion, Affordable Housing $1.2 billion, Environment $336 million, Community/Disability $170 million, Other $979 million.
State borrowings (WATC): $50.5 billion at end of June 2026, projected to rise to $64.6 billion by 2030. Australian banks hold about 70 percent of WA bonds because banking regulators require banks to hold government paper as part of their liquidity buffers. Reserve Bank of Australia holds about 11 percent. Offshore investors purchased 41 percent of last year's syndicated bond issuance.
Loan Act 2017 cumulative limit: $34.5 billion, with $7.5 billion of authorisation remaining at June 2026. The legal cap on Consolidated Account borrowings.
WA's net contribution to the Federation: $36.2 billion in 2024-25, $12,016 per person. The most under-discussed fact in the Budget. WA contributes $36 billion more to the Federation than it gets back. NSW is the only other state contributing more than it receives, at $1,046 per person, about one-eleventh of WA's per-person contribution. Every other state receives more than it pays. Tasmania receives $11,485 per person. Northern Territory receives $26,564 per person. Across 1986-87 to 2024-25, WA has contributed $449 billion to the rest of the country.
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What stands out
The headline "household charges below inflation seven years running" is real, but the mechanism keeping it real is a $1.279 billion State subsidy paid to Synergy across four years to keep electricity prices below cost.
- That subsidy includes a brand new operating payment, the Cost Growth Assistance Payment, which the Budget Papers describe in plain terms as funding "the under-recovery of the A1 tariff that cannot be passed on to residential customers."
- Cost recovery from residential electricity dropped from 78 percent to 75 percent.
- The Government has chosen to absorb the cost growth rather than pass it through. That's a policy decision, not a market outcome.
- The same Budget reduces the public sector by up to 1,500 positions through the Voluntary Targeted Separation Scheme, $229 million provisioned for separation costs, $445 million in projected savings across the forwards.
- Holding household charges below inflation while reducing the workforce that delivers State services is part of the same fiscal story.
A new Clean Energy Fund of $1.4 billion and a new Major Projects Fund of $500 million are established this Budget.
- Combined with the existing Building Hospitals Fund (about $2.86 billion), Strategic Industries Fund ($638 million unallocated), Future Health Research and Innovation Fund (accumulating to $2.3 billion by 2030), and Social and Affordable Housing Investment Fund ($2.9 billion since inception), there is a substantial pool of capital that moves through Government drawdown approval rather than the annual appropriation process.
- The Loan Act sets a $7.5 billion ceiling on Consolidated Account borrowings; the Special Purpose Accounts sit beside that as a parallel system.
- The Treasurer's Advance, used to spend money in-year outside the main appropriation process, was drawn at $1.527 billion in 2025-26, the highest in years, with another $1.2 billion increase requested.
WA Health is now 32 percent of all general government spending at about $16.7 billion in 2026-27.
- Since 2021, Health has added 5,119 nurses (a 35 percent increase) and 2,102 doctors (a 42 percent increase).
- Health is the single dominant category of State spending. Aboriginal Child Placement Principle compliance has improved by only 1 percentage point from 2024-25, sitting at 62 percent against an 80 percent target.
- The Budget Papers cite "the limited availability of care arrangements with Aboriginal carers or relatives" as the reason.
- Out-of-Home Care reform is funded at $377.7 million across the forwards.
AUKUS-adjacent infrastructure is becoming visible as line items but the Budget Papers don't describe what most of them are.
The AUKUS Defence Industry Incentive Scheme appears for the first time as a $3.4 million timing reduction in a Treasurer's Advance line, meaning the scheme exists and is being deferred, but its scope is not described.
- Henderson Stage 1 Continuity of Service Funding from the Commonwealth is $30 million for one year, no description of what services.
- The AMC Landing Craft Heavy Program is $30 million new. Pilbara Ports Common User Upgrades is $430 million Commonwealth funding across the period.
- Each piece is small relative to the overall Budget; together they trace a defence industrial program that's referenced without being described.
The State is establishing central AI infrastructure: the AI Investment Fund, the Rapid AI Delivery Team, and the Digital Capability Fund at $301 million in 2026-27 alone.
- It is also deploying generative AI in front-line services like classroom teaching and water utility management.
- The Privacy and Responsible Information Sharing Act 2024 enforcement jurisdiction commences 1 July 2026, in the same year as much of this AI infrastructure ramps up.
- Vendor names are consistently absent from the published budget papers.
WA's net contribution to the Federation is $36.172 billion in 2024-25, $12,016 per person, more than 11 times NSW per capita.
- WA has contributed $449 billion to the rest of the country since 1986-87.
- WA's GST share is still the lowest in the country.
- That's the structural fact the rest of the Budget sits on.
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Sources: 2026-27 WA State Budget Papers: Budget Paper No. 1 (Treasurer's Speech), Budget Paper No. 2 Volumes 1 and 2 (Budget Statements), Budget Paper No. 3 (Economic and Fiscal Outlook including Appendices 1-12), the supporting Agency Works Program. All available at https://www.ourstatebudget.wa.gov.au/2026-27/.